Branding is the term used to describe the overall design and promotion of a company, its products and services. Branding involves selecting the colors and design elements used in creating a logo and consistently labeling and packaging all products using similar elements to brand the recognition of the company into the minds of consumers. Branding also involves recognition of a company’s overall message, which is woven into design elements and marketing features. Rebranding is the term used to describe taking an existing brand and changing or altering its message and design elements.

Pros of Branding

Branding a company and its products or services helps set the company apart from its competition. If branding is done effectively and consistently, consumers instantly recognize the company based on its color and design elements alone. Examples of successful branding can be seen in many franchise restaurant chains and soft drink companies, where the image of the logo itself identifies the brand in the minds of customers.

Cons of Branding

To be effective, branding messages must be repeated frequently and through numerous mediums. A company’s brand image should be consistent through its website, building signage, business cards, collateral materials and product packaging. This can be a costly prospect, especially for small businesses that may not have a substantial advertising and marketing budget. Another downside to branding is that if the look and feel of the brand becomes outdated, or if the company substantially changes its image, rebranding must take place.

Pros of Rebranding

Rebranding is a way of repackaging the image of a company and building a new or updated brand. Rebranding can breathe new life into a company, product or service, changing the way it is perceived by consumers. It can also create an opportunity for the company to embrace a new message or position in its industry, allowing it to reach new markets and attract a new demographic.

Cons of Rebranding

Much like the branding process, rebranding is also a significant financial investment for a company. Rebranding nullifies the previous brand and in some instances, can result in confusion or lack of brand recognition by consumers. If this happens, the rebranding effort is simultaneously expensive and detrimental to the original brand, which loses its equity and recognition. Successful rebranding often retains some elements of the previously known and recognized brand. This can include using the same color scheme or updating fonts to maintain a semblance of brand recognition for existing customers.